Generative AI Hits Disillusionment as Inconsistencies, Costs Dampen Enthusiasm

Aug 31, 2025
CIO
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Summary

Generative AI faces disillusionment as enterprises grapple with inconsistencies, hallucinations, high costs, and lack of robust use cases, pushing it into Gartner's trough of disillusionment despite potential for future revival through improved accuracy and composite AI approaches.

Key Points

  • Generative AI descends into disillusimentation as inconsistent results, hallucinations, and lack of use cases tolerant to inaccuracies lower expectations.
  • Enterprises struggle with robustness, reliability, and high costs of generative AI, pushing it into the trough of disillusionment in the Gartner Hype Cycle.
  • Better use cases, improved accuracy, and composite AI combining multiple techniques offer potential to revive excitement around generative AI in the future.

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